For The Wiz

Merlin,while reading some of your posts,I saw two statements that were interesting,and
I have questions regarding them.So,if you may answer...

1)In one post you said that you read one book about baseball.I think "Moneyball" or something
And you said that you learned much from it,stuff that helped you become better at trading.
As there is almost no chance of me reading it,may you say what is that you learned from it?

2)In another post you said that you started to look at your account as portfolio.
What is that?how did you start looking at your account?what was the diference?

Merlin,I`m sure you didn`t noticed this thread(because it was on the bottom of forex discussion page),so I`m replying to put it on main page.I hope you will notice it.

sorry man i must have missed this thread!!

1) for me to even try to explain how great a book Moneyball is would not do it justice. but i will give you the gist. do you know who john henry is? the owner of the red sox and a billionaire forex trader. well he has a different approach to baseball, one based on statistics instead of gut instinct. thats how he won the world series last year. well, this book is about the Oakland A's, and how they started the statistics revolution in baseball around 2001. i have some advice for you: READ THE BOOK!! its wildly entertaining, you will breeze right through it.

2) when you look at your trading as a portfolio, you dont care about what the balance of your broker account is, or how well each of your strategies is doing. your concern is more with the portfolio. do you know i have a few strategies that lose money, consistently, and i stilll trade them for the negative coorelation they bring to my portfolio. a net losing strategy can actually help your overall portfolio if the coorelation is right. the willingness to trade a losing strategy is one sign that you have begun to look at your trading as a portfolio rather than a single account. for more on this subject, read Fred Gehms MM book.

Thanks for response Merlin.

1)I would like to read it,but I think I can`t find that book here in Serbia.Do you know is there any pdf version for download?

2)This is very interesting.But,please explain,what is negative coorelation,and why would one trade strategy that is losing money?I mean,how does tha help you.
Very,very interesting...I really can`t wait answer...

Alex, PM me with your postal address and I'll mail a copy to you, no charge.

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